broadband policy (group assignment, semester 4 - batch 2010-2012)

5/28/2018 Broadband Policy (Group assignment, Semester 4 - Batch 2010-2012)

1/29

CONSTITUTEDCONTEXTOFPOLICY:

GRAPPLINGWITHRE-REGULATIONBroadband Policy 2004 2010

Submitted By: Sheeba, Suvojit, Merlin, Neeti, Shafaque, Iram


2/29

CONTENT

Introduction

Verticals Analysed

Evolution/Content

Licensing NormsAllocating Resources

Universal Service Obligations

Policy Community

Managing Interests

Conclusion


3/29

INTRODUCTION

Broadband 2004: Defined Broadband Policy as an

alwaysonData Connection and has the capability

of minimum download speed of 256 (Kbps)

Broadband 2010: Defined as a Data Connection

that supports a minimum download speed of 512

(Kbps)


4/29

VERTICALS ANALYSED

A. Evolution/Content

B. Licensing Norms

C. Allocating ResourcesD. Universal Service Obligation

E. Policy Community

F. Managing Interests


5/29

(A)EVOLUTION / CONTENT

Earlier Bills

2000- The Indian Parliament created the IT Act to provide a legalframework to regulate Internet.

2001- The Bombay High court appointed a committee to oversee

issues related to cybercrime.2003- CERT-IN (The Indian Computer Emergency Response Team)was empowered to implement India's filtering

regime. (the sole authority to issue blocking instructions)

2006- The Central government planned to put in place anadvanced screening system.

-Cyber Crime Cell of Mumbai police blocked all 'forums' andcommunities' on Orkut, Google provided police an onlinesoftware application called Priority Reporting Tool.


6/29

LEGALDISPUTESAfter the approval of IT act 2000- blocking of websites has beenput into place, for which government has been criticized forpoor understanding of the technical feasibility.

1998- Arun Mehta vs. VSNL over internet telephony.

2003- Notification was issued, which permits blocking of the websitesto 'balanced flow of information' and not censorship.

2003- Internet filtering incident took place, a Yahoo group linked tothe Hynniewtrep National Liberation Councilwas banned.

2006- Blocking of 17 websites, for hosting a We Hate Indiacommunity, on social networking site.

2007- Lakshmana Kailash K was arrested and charged underSection 295A of the IPC and Section 67 of the IT Act.


7/29

CARRIAGEANDCONTENT

Prior to 2008 amendment, intermediaries had

no immunity.

After the IITA (2008), intermediaries have

significant immunity - not considered liable

unless takedown notices are ignored.

Section 79 has been modified - anintermediary shall not be liable for any third

party.

Section 81 which states that the provisions of

the Act shall have overriding effect.

Nevertheless, IT Amendment Act 2008

makes a genuine effort to provide immunity to

the intermediaries but has failed to achieve

its objective due to lose drafting of few

provisions

Section 51(a) (ii), of Copyright Act speaks of

secondary liability- holds a person liable for

infringement.

Section. 79(3)(b), grants immunity to an

intermediary from liability.

The finding that an intermediary, though

having caused infringement under CopyrightAct, but exempt from liability as per s. 79 of I.T

Act. For e.g the matter of Myspace.

Recently the IT Act, 2000 has been amended,

Act has introduced two very important

provisions section 43A and 72A . But, still the

amended Act has to come into force.

(i) LAIBILITIES (ii) COPYRIGHT


8/29

(B)LICENSING NORMS

Licensing Categories

Category A: All India ISP License

Category B: 20 Territorial Telecom Circles, 4 Metros- Delhi, Mumbai,

Chennai, Kolkata and 4 major telephone dist.- Ahmadabad,

Bangalore, Hyderabad, Pune

Category C: Secondary Switching Areas (SSA) of DoT, geographicalboundaries as on 1.4.1998

Department of Telecommunications http://www.dot.gov.in/internet%20services/internetservices.htm accessed on 17/03/2012 at

7.02 pm


9/29

ELIGIBILITYCRITERIA

The applicant company has to pay entry fee and processing fee

Any Indian company with a maximum foreign equity of 74% is

eligible (100% is also allowed, but in that case the ISP can not set up

an International Gateway)

Based on Service Area of Operation, they are categorized as

Category 'A and 'B


10/29

OWNERSHIPPATTERN

Central thrust of ISP policy - to open up to as many private

sector firms as wished to offer services, while retaining public

control over infrastructure.

Both direct and indirect foreign investment in the licenseecompany shall be counted for the purpose of FDI ceiling.

SAFEGUARDING CONCENTRATION:

90% Market share captured by Top 5 ISPs in 4 Metros

70% Market catered by MTNL & BSNL


11/29

PRICING& TAXES

One time standardized, non-refundable entry fee for private

players entering the sector.

Processing fee

(a) Aannual license fee @6% of Adjusted Gross Revenue(AGR).

(b) Pure Internet Services Charges

(c) Prime Lending Rate (PRL) at 2%

(d) Royalty fee(e) Service Tax & Sales Tax


12/29

(C) ALLOCATING RESOURCES

Government is the central nodethrough which scarce resources areallocated to the market players foroptimal utilisation of resources and toyield maximum output. This processwill be examined through:-

I) Technological Standards

Adoptedii) Debates Surrounding the

Adoption of Technologies

iii) Spectrum Allocation andControversies


13/29

TECHNOLOGICALSTANDARDSADOPTED

WIR

ELINE

Optical Fibre DSL

Cable TVNetwork

BPL

WIRELESS

SatelliteMedia (VSATDTH)

Wi-Fi

WiMAX

3G (BWA)and CDMA

i-Burst


14/29

DEBATESAROUNDTECH.

Reliance on

DSLTechnology

Technology

best suitedfor whichTopography

WhetherWireless

Services willbe expensive

for RuralIndia

The Adoptionof Optical

FibreTechnologies


15/29

SPECTRUMALLOCATIONAND

CONTROVERSIES

April 4, 2011 BSNL demands a probe into the Allocation of the BroadbandSpectrum

2.6 GHz Band spectrum allocated was not compatible for the use ofTDD-LTE (Time Division Duplex-Long Term Evaluation) Technology

In 2008 all Recommended Spectrum De Licensed except 700 MHZ

TRAI Recommends to De licence these Spectrum for BWA Providers

700 MHz, 2.3 to 2.4 GHz, 2.5 - 2.69 GHz, 3.3 - 3.4 GHz, 3.4 - 3.6 GHz,5.15 - 5.35 GHz and 5.725 - 5.825 GHz


16/29

UNIVERSAL SERVICE OBLIGATIO

N

Universal Service Obligation means the obligation to

provide access to basic telegraph services to people in

rural and remote areas at affordable and reasonable

prices diversifying network participation.

The Indian Telegraph (Amendment) Act, 2003 gave

statutory status to Universal Service Obligation Fund

(USOF), legislation passed in December 2003.

To enable USO Support for Mobile Service and B/Bandconnectivity in rural and remote areas of the countryIndian telegraph (Amendment) Act 2006 was passed.
http://www.dot.gov.in/uso/actrules/IndianTlegraph%20(Amendment)%20Act%202003.dochttp://www.dot.gov.in/uso/actrules/IndianTlegraph%20(Amendment)%20Act%202003.dochttp://www.dot.gov.in/uso/actrules/IndianTlegraph%20(Amendment)%20Act%202003.dochttp://www.dot.gov.in/uso/actrules/IndianTlegraph%20(Amendment)%20Act%202003.dochttp://www.dot.gov.in/uso/actrules/IndianTlegraph%20(Amendment)%20Act%202003.dochttp://www.dot.gov.in/uso/actrules/IndianTlegraph%20(Amendment)%20Act%202003.dochttp://www.dot.gov.in/uso/actrules/IndianTlegraph%20(Amendment)%20Act%202003.dochttp://www.dot.gov.in/uso/actrules/IndianTlegraph%20(Amendment)%20Act%202003.dochttp://www.dot.gov.in/uso/actrules/IndianTlegraph%20(Amendment)%20Act%202003.dochttp://www.dot.gov.in/uso/actrules/IndianTlegraph%20(Amendment)%20Act%202003.doc


17/29

USO PROTOCOLFORGOVT. ANDPVT.

ENTITIES

Activity supported by USOF under (e) StreamIV

for Broadband:

Stream-IV : Provision of Broadband connectivity to

villages in a phased manner.

Broadband expansion be facilitated through USO

under DoT and loans provided by the Govt


18/29

USO SCHEMESANDSUBSIDIES

Wireless Broadband Connectivity for Rural Areas

through USO

20.1.09: Agreement b/w USOF and BSNL

30.10.2009: Agreement b/w USOF and BSNL


19/29

Broadband Connections Customer Premise Equipment Computing Device Broadband Kiosk

Subsidy for BB Connectivity in

27,789 Rural exchanges

Both Capex and Opex

subsidized

Total subsidy estimated for

8.6 Lakh connections

Subsidy for 8.6 Lakh CPEs.

CPEs subsidized with Rs.850/-

per modem.

Subsidy for 8.6 Lakh

Computing device

Subsidy of Rs. 4,500 in down

payment for computing

device.

Subsidy for ~28,000

Broadband Kiosks

BSNL RURAL INITIATIVES


20/29

ARGUMENTSFORANDAGAINST

SUBSIDIES

Arguments Against

Rural Broadband

Connection Schemeunder USOF

Cheap Monthly Rental,Free Modem, Speed512 Kbps, Full Detailsand Tariffs

BSNL not fulfilling therequisite criteria

USOF funds not

utilised fully

Arguments For:

To Connect Rural India

Only USOF canprovide the requisitefunds to set upinfrastructure


21/29

Policy community refers to the bunch of people who are a part of policy

formation. These include Government representatives; however, tradebodies, civil society and individuals also contribute in forming a policy.

Trade Bodies

Trade bodies are businessassociations, founded andfunded by business houses andoperate for the industry. These

are involved in lobbying andtry to influence policy in adirection favorable to theirgroup members by influencingthe activities of regulatory

bodies.

Civil Society

Civil society are the peopleoutside the state and marketforces who come to advance anissue of common interest. It is

also referred to as thecongregation of non-governmental organisation andinstitutions seeking an interestand will of the citizens.

(D)POLICY COMMUNITY


22/29

RECOMMENDATIONSOFTBSANDCSS

1. Cost of spectrum be reasonable

(ISPAI 2008)

2. Broadband should be Highly cost

effective and affordable (BSNL 2008)

3. Cost of access devices (PCs and

Set-Top Box) be reduced (AUTSPI

2006)

4. USO fund for optical fiber

connectivity (AUSPI 2008)

5. Broadband via DTH (CASBAA 2008)

6. Equal incentives & opportunities toprivate players (Airtel 2008)

7. Tax Holiday (BSNL (2008)

8. Mobile based broadband be given

priority (Ericson 2008)

9. Sharing of Infrastructure (VSNL

2006)

1. Broadband Speed beincreased (FSDCA 2008)

2.Broadband rental be reduced

(PDCA 2006)

3.Cost of access device be

reasonable (VOICE 2006)4. Local content in regional

language (KCA 2008)

5. Quick Technical Support to

consumers (VOICE 2006)

6. Co-ordination between DoT,BSNL other agencies lacking.

(OCA 2006)

COMMON IDEAS

BB service should be cost effective

Cost of access device bereasonable

TRADE BODIES CIVIL SOCIETIES


23/29

USO fundsfor OpticalFiber

Network

BroadbandthroughDTH/DSL

Accessdevice bereasonable

TRADEBODIES Broadband

speed (256kbps to 512

kbps)

Accessdevice bereasonable

CIVILSOCIETY

DEMANDSREFLECTEDINTHEPOLICY


24/29

CONTD

DEMANDS NOT RELECTED

1. Spectrum reasonable for ISPs

2.Equal incentives/opportunitiesto private players

3. Infrastructure sharing and PPPmodels

4. Mobile based broadband

5.Tax holiday6. BB service be cost effectiveand affordable

1. Local content in regional

language

2. Broadband rental not reflected

3. Technical Support to consumer

4.Co-ordination between Dot andBSNL


25/29

Was There Balance?

The authority states that the next five years are going to see the spread of 3G as wellas the introduction of 4G services enabling subscribers to benefit from data and

application services.

NEWTRAJECTORYINTHEPOLICY

Trade bodies more demands have been reflected in plan than of civil society.

It is also because Trade bodies are well established funded by business

organizations and do recommend on consultation papers. There is no such

uniformity on civil society groups. While on the one hand the number of civil

society is less in number on the other they are not intend to push for theirrecommendation.


26/29

(E) MANAGINGINTEREST

Disputes Following Policy

AnnouncementDispute is basically a conflict or controversy

In broadband policy such disputes are settled down under TDSAT

YEAR ISSUE BETWEEN

2005 Revenue

Sharing

Vendor &

Government

2005 New

Guidelines

Vendor &

Government

2006 License Fee Vendor &

Government


27/29

Regulations are rule design to control the conduct of those to

whom it applies.

Quality of Service of Broadband Service Regulations 2006

For addressing quality of service issue for broadband issue

Telecom Consumers Protection and Redressal of Grievances

Regulation, 2007

- Short title, extent and commencement- E.g. CPE-Customer Premises Equipment

- LAN-Lo cal Area Netwo rk

Mechanisms of Statutory, Self or Co-

Regulation in the Segment


28/29

Compliance is acting according to a certain standards. It is a

process of complying with a desire, demand or proposal.

Workshops conducted by Civil Societies to protect consumer

interest in Broadband;

Consumer Rights Education & Awareness Trust (CREAT)-

BangaloreBharat Jyoti- Lucknow

Consumer Coordination Council- Chandigarh

Consumer Association, Palakkad- Palakkad

Initiatives of Citizens Groups Or Trade

Bodies To Check Compliance Or

Measure Impact of Policy


29/29

LARGER CONCLUSION

PUBLIC GOOD, EQUITY &

ACCESS

Issues of slow growth of internet services were raised and

the targets fixed by broadband policy were not achieved.

Broadband policy 2004 failed to address larger objective of

public good, equity and access.

Broadband policy 2010 was formulated for providing wider

access to the public and equitable reach.

but largely failed to reach across the nation.

broadband policy (group assignment, semester 4 - batch 2010-2012)

Documents